The UK government has lifted sanctions on John Michael Ormerod, a British accountant who was linked to Russia’s so-called shadow fleet of oil tankers. The decision came after he publicly condemned Russia’s invasion of Ukraine and urged others to avoid supporting Moscow’s energy sector.
The sanctions were first imposed in May last year. They were part of UK efforts to disrupt Russia’s oil exports after its full-scale invasion of Ukraine. It is rare for the UK to sanction one of its own citizens, which made the case unusual.
Officials later removed John Michael Ormerod from the sanctions list. A person familiar with the process said the government decided the aim of the designation had been met.
Shadow Fleet and Tanker Purchases
The sanctions were connected to Russia’s “shadow fleet.” This term describes oil tankers used to move Russian oil while avoiding Western restrictions.
After the invasion, the UK and its allies introduced limits and price caps on Russian oil to reduce funding for Moscow’s war efforts.
Between December 2022 and August 2023, John Michael Ormerod acquired at least 25 second-hand tankers. The total cost was more than $700 million.
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Each vessel was bought through separate special purpose companies set up in the Marshall Islands. These structures are common in shipping deals.
The funds came from Eiger Shipping DMCC, a Dubai-based company. It paid in advance to charter the ships. After purchase, the tankers transported Russian oil linked to Lukoil, Russia’s second-largest oil producer.
Shipping tracking data showed that the vessels carried more than 120 million barrels of oil from Russia after they were acquired.
Authorities believed the transactions formed part of the shadow fleet system, which allows oil trade to continue despite sanctions and restrictions.
Public Statement and Impact
After sanctions were imposed, Ormerod said the measures had a devastating effect on him and his family.
His UK bank accounts and other assets were frozen. According to his lawyers at Quillon, he was effectively cut off from paying for even basic needs.
In February, he issued a public statement through his lawyers. He condemned Russia’s invasion of Ukraine and said he encouraged others to avoid actions that could support Russia’s energy sector.
Officials considered this statement important when reviewing the case.
When the UK confirmed the delisting on Monday, he welcomed the decision. He again stated that he strongly opposes the invasion and warned people to be careful because sanctions rules are complex.
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His lawyers said that when he was first approached in late 2022 to buy ships, the proposal was presented as general trade. They said he conducted extensive due diligence to ensure the purchases did not break sanctions rules.
Industry Connections and Other Links
John Michael Ormerod is an experienced figure in London’s shipping finance sector. He was educated at Eton and worked as a chartered accountant.
From 1975, he held shipping roles at major financial institutions before starting his own advisory firm in 1990.
Investigations also found that the vessels were later managed by Dubai-based companies linked to Muhammad Tahir Lakhani, a British national born in Karachi who had known Ormerod for nearly 40 years.
Lakhani has not been sanctioned. He stated that he never took part in or facilitated any breach of sanctions.
The UK sanctions were part of broader efforts to target Russia’s shadow fleet and limit oil revenue after the invasion of Ukraine. The case became notable because it involved asset freezes, large shipping transactions, and later a reversal of the sanctions decision.
The government confirmed the removal from the sanctions list but did not provide detailed public reasons beyond saying the objectives of the designation had been achieved.